India: Iron ore concentrate prices rise to over six-month highs in recent deal

Iron ore concentrate prices in Jabalpur, central India, witnessed a significant increase this week following a sharp hike in pellet and iron ore prices. Notably, prices rose to over six-month highs in a recent deal, SteelMint notes.

SteelMint's assessment for Fe 63% concentrate prices currently stands at INR 3,800/tonne (t) exw, up by INR 300/t, w-o-w.

Meanwhile, one deal of 60,000 t was heard at INR 3,800/t exw this week which was taken into consideration in the T1 trade of the index. Moreover, a 40,000 t deal was also reported on 10 December.

Reasons for hike in iron ore concentrate prices

• Hike in pellet prices: SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,900/t, an increase of INR 175/t, w-o-w. However, the market was silent on falling sponge prices and the gap between offers and bids is still the same for buyers. Market participants are in a wait-and-watch mode. No transactions were reported this week so far.
  
  
• Odisha iron ore fines prices rise w-o-w: SteelMint's weekly Odisha iron ore fines (Fe 62%) index has moved up by INR 100/t to INR 4,350/t ex-mines (including royalty, DMF and NMET). As per SteelMint's sources, a bulk deal of around 100,000 t of fines (Fe 62%) was concluded by an Odisha-based trader at around INR 4,200/t (including royalty, DMF and NMET) this week. State-run Odisha Mining Corporation (OMC) has scheduled an auction for iron ore fines and lumps on 16 December. Around 1.15 mnt of fines and 0.65 mnt of lumps will be put up for auction from OMC's mines. The miner has increased the base price for fines by up to INR 650/t.
  
  

Outlook

Iron ore concentrate prices are less likely to fall in the near-term owing to supportive iron ore market sentiments, especially post-export duty rollover, SteelMint understands.